As part of a new global HSBC study1, we asked 1143 businesses with international operations how they’re navigating uncertainty. The findings show that 96% of businesses still consider international expansion important, as it can facilitate growth, economies of scale and risk diversification despite an increasingly dynamic and challenging global economic landscape.
The top three factors cited as key to international success include having the right network (24.7%); capable local teams (13.8%) and favourable macroeconomic conditions (13.4%).
For business leaders, the top three challenges when expanding overseas are regulatory and compliance issues (31%), brand recognition (25%) and increased competition (24%).
57% of global businesses are using AI to drive their international expansion plans and streamline business operations.
Expanding internationally offers the opportunity to unlock new markets, and to diversify risk – and several key factors are shown to influence the international success of a business. According to our research, we found that strong business networks, capable local teams, and in-depth market knowledge can be critical for navigating the complexities of global markets.
But success isn't just about entering new markets; it can be about building the right relationships and having a good network. This is where we can help – by making connections, supporting with regulatory requirements and overcoming local nuances in your next market.
Companies worldwide are pushing international expansion to diversify their revenues, manage risks, and access new talent. But the world is increasingly unpredictable and the red tape of new markets can be daunting. Companies need a new playbook. Our research found that the biggest driver of winning in new markets was having access to networks that can open doors and reduce uncertainty
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Take our Global Expansion Assessment to see how your business performs, and how you could improve, when it comes to driving international success.
Children’s audio brand Yoto began with a mission to cut screen time for children and has gone on to use HSBC’s Growth Lending Fund and international network to take their product to more users than ever. Hear from their CEO and Co-Founder, Ben Drury, on how they’re building the brand internationally with the help of our network.
We know we can’t stay still and focus merely on our existing markets. International growth is crucial to our success, and we can't do this alone. With a partner like HSBC, we can gain a deep understanding of new markets like APAC and the US and how best to expand into them.
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